Private equity firm Warburg Pincus has picked up around 27% stake in
Delhi based mid price hotel chain, Lemon Tree, for US$60 million. Currently
two Lemon Tree hotels are operational at Gurgaon with plans to have fifteen
more all over India by 2010. The proceeds of the stake sale will be utilized
in Lemon Tree expansion. Part of the money raised, approximately US$15.5
million, will be used as seed capital to launch a new chain of economy
hotels, under the Red Fox hotel brand name. The plans are afoot to launch
Red Fox in Manesar and Mumbai and then increase the presence in cities
like Pune, Jaipur and Hyderabad. Lemon Tree Hotels operate in US$65 to US$70 price range. Red Fox hotels
are expected to be positioned at US$ 25 to US$30 price range.

Leading Auckland-based property company Melview Developments has announced
the launch of a brand new group of hotels in New Zealand called the Quadrant
Hotel Group. The first hotel in the chain, The Quadrant, Auckland, officially
opened its doors on 2 August 2006. The Quadrant Hotel Group is Melviews
first venture into managing and operating hotels in New Zealand. The companys
hospitality experience is in developing and building hotels including
the Sebel Hotel, the soon-to-be-announced five-star hotel in Lighter Quay
and the Holiday Inn in Wellington. Construction of a second Quadrant Hotel
will begin in late 2007 in Queenstown, on the shores of Lake Wakatipu.

A new US$108 million fund was set up to lure more high-spending business
travelers to Singapore, as part of Singapore's vision to double visitor
arrivals to 17 million and triple tourism receipts to US$19 billion by
2015. The monetary incentive, drawn from an existing US$1.3 billion tourism
development fund, is the largest sum set aside for the MICE (meetings,
incentive travel, conventions and exhibitions) sector. The money will
be used over five years to woo international organizations to set up regional
offices in Singapore and hire staff. The Trade and Industry Minister also
announced Singapore was the top convention city in Asia and was ranked
second in the world last year, according to the International Convention
and Congress Association's list. But he cautioned industry players not
to be complacent as cities such as Bangkok, Melbourne, Shanghai and Dubai
are closing in.

A South-east Asian pact to allow visa-free travel
for citizens within the Association of South-east Asian Nations (ASEAN)
has been hailed as a boon for the tourism industry as well as for regional
unity. Combined with growing affluence in many of the ten member states
and in an era of more affordable budget airlines, the pact which will allow
a two-week visa-free entry for ASEAN nationals travelling within the group
of countries is expected to have a significant impact. This move should
result in greater ease of travel within the region and stimulate more social
and commercial interaction within ASEAN, said Tiger Airways Chief
Executive Tony Davis. The agreement will take effect once it is ratified
by all ten member countries. ASEAN includes Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Bilateral agreements between some ASEAN countries requiring their nationals
to obtain visas currently limit intra-regional travel.

VinaCapital, the fund manager of the London Stock
Exchange-listed Vietnam Opportunity Fund, announced its acquisition of 70%
of shares in the Hilton Hanoi Opera on 1 August 2006. Its latest acquisition
is a part of VinaCapital's plan to invest US$43 million in Hanoi's tourism
and hotel sector. Last year, the group also bought 70% of foreign investors'
holdings in the Sofitel Metropol Hotel. The company is also investing in
a 260-hectare resort in Da Nang and is looking at other projects in Nha
Trang and Ho Chi Minh City. VinaCapital, established in September 2003,
with holdings in excess of US$450 million, is a leading fund management
company in Vietnam. Its US$245 million Vietnam Opportunity Fund invests
in real estate, public companies, private equity and the privatisation of
state-owned enterprises, while its US$205 million VinaLand Fund is focused
on financing real estate projects.

Hilton Hotels Corporation announced the beginning
of a global expansion effort for the upscale, full-service Doubletree hotel
brand. Hilton has signed an agreement with Bangkok-based Destination Properties
Ltd to manage a newly built 358-room golf resort and spa in Sriracha, Thailand.
The Doubletree Golf Resort & Spa near Sriracha is anticipated to open
in early 2008. Located 25 minutes from downtown Pattaya and 40 minutes from
the new Suvarnabhumi International Airport, the hotel will feature indoor
and outdoor meeting space, day and night golfing, squash courts, tennis
courts, a sports bar, swimming pool and a traditional Thai spa and Japanese
pool spa. Room and suite sizes will range from 35 to 65 square metres, with
many including their own private plunge pools. The golf course was designed
by renowned architect Gary Player, and was host to the 1993 Thailand Open.
Hilton currently operates four hotels in Thailand.